Cryptocurrency theft reached $2.2bn (£1.76bn) in 2024, with North Korean hackers reportedly responsible for $1.3bn, according to a Chainalysis report. The total marks a 21% increase from 2023, though it remains lower than peak years.
The study highlights that hackers often target private keys used to access crypto platforms, causing severe losses for centralised exchanges. Significant breaches included a $300m theft from Japan‘s DMM Bitcoin and a $235m loss from India-based WazirX. Many attacks were linked to citizens of North Korea posing as remote IT workers.
The United States government has accused Pyongyang of using stolen funds to evade sanctions and finance weapons programmes. Recently, 14 North Koreans were indicted in a federal court for alleged extortion schemes, while the State Department announced a $5m reward for information on these activities.
Craig Wright, an Australian computer scientist, has been found in contempt of court for falsely asserting he is Bitcoin’s creator, Satoshi Nakamoto. Despite a High Court ruling in March debunking his claim, Wright continued launching lawsuits seeking intellectual property rights over Bitcoin, including a $1.2 trillion demand.
The court described Wright‘s actions as ‘legal terrorism’ and sentenced him to a suspended 12-month prison term. If he persists, he risks jail time. Wright’s claim lacked concrete evidence, prompting the cryptocurrency industry to unite against him.
The court found Wright ‘lied extensively’ in his pursuit of recognition, creating a ‘chilling effect’ on the industry. The identity of Bitcoin’s inventor, Satoshi Nakamoto, remains unknown, as all claims, including Wright’s, have been discredited.
Key policymakers, industry leaders, and blockchain innovators convened in Washington, D.C., for the Blockchain Association’s third annual Policy Summit. Held from 16 to 17 December 2024, the event explored the intersection of blockchain innovation, regulatory clarity, and national security, drawing prominent figures such as House Majority Whip Tom Emmer, Congressman Mike Flood, and Congressman Wiley Nickel.
The discussions centred on regulating stablecoins, securities laws, and oversight by agencies like the Securities and Exchange Commission (SEC). Participants emphasised the need for balanced regulation to foster innovation while ensuring national security. Congressman Mike Flood highlighted the importance of state and federal collaboration, expressing optimism about partnerships between the SEC and the Commodity Futures Trading Commission (CFTC).
President-elect Donald Trump addressed attendees via video, affirming his administration’s support for blockchain technology and its role in bolstering national security. Industry representatives, including decentralised projects like CESS, Filecoin, and Helium, showcased the potential of blockchain to safeguard sensitive information and enhance privacy. Calls for practical regulatory approaches echoed throughout the summit, reflecting the industry’s commitment to progress through cooperation with policymakers.
El Salvador has added $1 million worth of Bitcoin to its strategic reserve, purchasing 11 BTC shortly after securing a $1.4 billion financing deal with the International Monetary Fund (IMF). This latest acquisition brings the nation’s holdings to nearly 5,981 BTC, valued at around $580 million. The move diverges from its previous ‘one Bitcoin a day’ policy announced by President Nayib Bukele last year.
The IMF agreement, however, comes with stipulations that aim to limit the government’s involvement in cryptocurrency activities. El Salvador agreed to confine its Bitcoin transactions, make private sector acceptance voluntary, and ensure taxes can only be paid in US dollars. Additionally, the government plans to sell or phase out the Chivo crypto wallet, with private wallets expected to take over its role in the market.
Despite these restrictions, the National Bitcoin Office reaffirmed its commitment to Bitcoin as a core part of the country’s strategy, hinting at potential accelerated purchases in the future. Director Stacy Herbert assured citizens that Bitcoin would remain legal tender, even as the IMF deal awaits final approval. This marks the culmination of years of negotiations, underscoring the challenges posed by Bukele’s ambitious Bitcoin policies.
Spot Bitcoin ETFs in the US faced $680 million in outflows on 19 December, following Bitcoin’s fall below $96,000. This marks the end of a 15-day inflow streak that had brought over $6.7 billion into funds. Fidelity’s FBTC led the outflows, with Grayscale and ARK 21Shares also seeing significant withdrawals. However, WisdomTree’s BTCW recorded modest inflows, standing out as an exception on an otherwise difficult day for the market.
The broader cryptocurrency market struggled as the Federal Reserve announced a cautious stance on future rate cuts, despite implementing a 0.25% reduction. Bitcoin fell to $96,751, a 4.4% decline, whilst trading volumes in Bitcoin ETFs surged to $6.31 billion. The Fed’s hawkish tone, projecting only two additional cuts by 2025 alongside delayed inflation targets, has dampened investor sentiment.
Ethereum ETFs mirrored Bitcoin’s trend, recording $60 million in outflows. Grayscale’s ETHE led these withdrawals, although Fidelity and VanEck managed small inflows. Despite the day’s challenges, Ethereum ETFs still hold a positive net inflow of $2.4 billion. Ethereum’s price dropped 8.1%, landing at $3,378 as the market absorbed the Federal Reserve’s cautious outlook.
Worldcoin, co-founded by OpenAI CEO Sam Altman, has been instructed to delete all iris scan data collected during its operations. The Spanish Data Protection Agency (AEPD) confirmed the enforcement after collaborating with Bavaria’s data watchdog, which ruled the venture breached European Union privacy laws.
The project, designed to create a global identity system using biometric data, faced criticism across multiple countries. In March, Spain’s High Court upheld a temporary ban on the iris-scanning initiative, rejecting an appeal from Worldcoin’s owners.
Based in Bavaria, Germany, Worldcoin rebranded itself as ‘World’ and had aimed to reward participants with free cryptocurrency and digital IDs in exchange for biometric verification. Privacy advocates have voiced strong concerns over the storage and handling of sensitive data.
The directive marks a significant regulatory challenge for Worldcoin, reflecting the growing scrutiny of biometric technologies under Europe’s strict privacy standards. Compliance with the deletion order is now essential to align with the General Data Protection Regulation.
During a freelancer meetup at Café Oz in Paris on 3 December, Scott Horlacher, a software engineer, found himself caught in a crypto scam. While discussing with two individuals who claimed to represent a new crypto exchange called Lainchain, Horlacher grew suspicious. The platform’s design and its request for users to input wallet seed phrases instead of standard security measures made Horlacher realise he was dealing with a scam.
After confronting the duo, they swiftly left the event. Horlacher, along with others, began to warn fellow attendees. A subsequent investigation by AMLBot, a blockchain forensics firm, revealed that Lainchain was a sophisticated phishing scam designed to steal personal and wallet information from users. The scam relied on fake identities and social engineering tactics to deceive victims.
Lainchain’s website appeared professional but was full of red flags, including the manipulation of wallet access and demands for seed phrases. The platform’s hosts were found to be connected to other fraudulent websites, and investigations showed their use of stolen identities to create false legitimacy. The scammers also exploited Telegram and other social media platforms to lure victims.
This case serves as a reminder of the growing threat of phishing scams in the crypto space. Users are urged to be cautious of any platform requesting private keys or seed phrases and to verify the legitimacy of any crypto-related website or service before engaging with it.
Ethereum’s price dropped sharply this week, falling to a key support level of $3,540, marking a 10% decline from its recent peak. The pullback comes in the wake of the Federal Reserve’s hawkish interest rate announcement, which also affected other cryptocurrencies like Bitcoin and Solana. The decline, however, does not change Ethereum’s strong fundamentals, as it continues to attract significant institutional interest, particularly through Ethereum Exchange-Traded Funds (ETFs), which have seen 18 consecutive days of inflows, totalling over $2.46 billion.
Despite the drop, Ethereum remains a dominant player in the blockchain space. The amount of staked ETH continues to rise, now surpassing 54.7 million tokens, with more than 206,000 unique stakers. This reflects long-term optimism from investors who are holding onto their positions. Ethereum’s Decentralized Finance (DeFi) ecosystem is also growing, with total value locked surpassing $73.7 billion, far ahead of competitors like Solana, Base, and Arbitrum.
The price retreat follows the Federal Reserve’s decision to cut its 2025 interest rate forecast, from four cuts to just two. This hawkish tone has had a cooling effect on cryptocurrencies and other risky assets, which typically perform better under a more dovish stance. Ethereum’s price chart shows a bearish double-top pattern, indicating potential further declines if the $3,526 support is broken. However, if Ethereum can break past the $4,090 resistance level, it may see a stronger recovery.
A former vice president of finance at Delphi Digital has been sentenced to four years in jail after admitting to embezzling nearly $4.5 million from the cryptocurrency research company. Dylan Meissner will also serve two years of supervised release and must repay more than $4.6 million, including funds he stole and an unpaid loan.
The Connecticut District Court found that Meissner, who managed Delphi’s finances between October 2021 and November 2022, accessed the company’s crypto wallets and bank accounts to steal millions. He also fabricated financial records to cover up the theft. In one instance, he took a 50 Ether loan worth $170,000 but failed to repay it, marking the start of his fraudulent activities.
Prosecutors argued that Meissner’s actions were part of a calculated scheme, not a reckless act of desperation. Though his defence cited substance abuse and efforts to atone for his actions, the court noted the sustained nature of his crimes. Meissner pleaded guilty to wire fraud as part of a deal and will report to jail in February 2025.
El Salvador has agreed to make Bitcoin acceptance voluntary for companies and limit public sector involvement in Bitcoin-related activities as part of a $1.4 billion loan deal with the International Monetary Fund (IMF). The agreement aims to reduce the country’s debt-to-GDP ratio, with the IMF highlighting that these measures will minimise risks associated with the Bitcoin project.
The government will also scale back its involvement with the Chivo wallet, the state-backed application launched to promote Bitcoin adoption, and taxes will continue to be paid in US dollars. Despite these reforms, the National Bitcoin Office confirmed El Salvador’s dedication to Bitcoin, stating that it will keep accumulating the cryptocurrency and maintain its strategy of daily Bitcoin purchases.
The loan deal, which awaits IMF Executive Board approval, ends years of negotiation that began after President Nayib Bukele made Bitcoin legal tender in 2021. While the IMF has criticised cryptocurrency’s volatility, Bukele’s advisers have dismissed the agreement’s restrictions as insubstantial. Meanwhile, surveys show limited adoption, with over 90% of Salvadorans not using Bitcoin for transactions.
